208 2nd St

Spiritwood, ND 58481

$40,000B

2 bd · 2.0 ba · 1,444 sqft · Built 1900 · SingleFamily · Pending · 7 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,019/mo
• Mortgage (P&I): −$210
• Tax + insurance: −$67
• HOA: −$0
• Vac / Maint / Mgmt: −$214
• Net cashflow: $529/mo
• Annual: $6,347/yr
• Cap rate: 22.16%
• Cash-on-cash: 56.67%
• DSCR: 3.52
• 1% rule: 2.55%
• Cash to close: $11,200

Investor read

• This is a 2-bed/2.0-bath single-family listed at $40k. Condition is rated fair.
• At list price, monthly cash flow is $529 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $40k).
• Only 7 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $338 of equity ($277 loan paydown + $61 appreciation (0.1% local appreciation)).
• Location reads 33/100 on livability (#388 in ND) — a limited-amenity area; tenant pool skews transient or value-seeking. Strengths: cost of living A+, crime A; Watch: health & safety D+, schools F, amenities F.
• Valley City 2 (town): math 52% / reading 40% proficiency, ranked #21 of 53 in ND (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1900 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 9 units permitted in Barnes County in 2024 (0 in 5+ unit buildings).
• Barnes County population projected at +5% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (0.1% appreciation + 3.0% rent growth), your $11k cash investment doubles in ~2 years — after that, you're playing with house money.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1900 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Repairs flagged (vision-AI assessment)

• Moderate: exterior siding — Weathered and discolored
• Moderate: interior paint — Worn and faded
• Minor: kitchen countertops — Worn and could be replaced